Directors raised taxes 1 mill -- about 2 percent -- for a total tax of 45 mills.

Superintendent Oliver Rodax said spending part the existing fund balance and taxes will even out a $200,000 deficit.

Rodax cited rising health insurance costs, salaries, inflation and retirement as reasons for the deficit. The district also does not get as much state subsidy money as it has in the past.

A mill is $1 for every $1,000 of a property's assessed value.

Last year, county commissioners changed the assessment ratio from one-third of a property's 1970 market value to 100 percent. The move effectively triples the value of each mill and reduces existing millage to a third of its old level.

The tax increase is equal to 3 old mills.

Each mill generates about $24,000 for the district and costs the average taxpayer $18.

At 45 mills, a home assessed at $18,000 would carry a tax bill of $810, $18 more than last year or an increase of 2 percent.

The board did not raise taxes last year but millage went up 2 mills in 2000-01 and 3 mills in 1999-2000.

The preliminary budget was approved in April.